World reacts to coming conflict

America's allies back Bush as he offers 48-hour ultimatum

By

AllenWan

TOKYO (CBS.MW) -- International reaction to the prospect of war spanned the gamut from acceptance, regret to hate Tuesday as America's closest allies rallied behind President Bush after he issued a 48-hour flee-or-flight ultimatum to Iraqi leader Saddam Hussein.

Late Monday, Bush said in a nationally televised address that the Iraqi leader had 48 hours to go into exile or face military action. The announcement marked a decision by the U.S. and its allies to abandon its diplomatic efforts that failed to get Baghdad to disarm. See full story.

After the speech, the White House raised the national terror alert to its second highest level. The level was raised to orange from yellow indicating a high risk of terrorist attack

In a further sign that that the clock was ticking on Iraq, the last U.N. weapons inspectors pulled out of Baghdad Tuesday morning, moving operations to a base in Cyprus and away from possible harm.

But one person who said he won't be leaving is the Iraqi leader himself. Defiant to the end, Saddam gave no sign of heeding to Bush's demands that he step down within 48 hours, or face war. He warned that American forces would find an Iraqi fighter ready to die for his country "behind every rock, tree and wall."

Across Asia, many of America's traditionally strong allies were offering their support to the United States, though much of it was tinged with regret that diplomatic efforts had failed.

In Tokyo, Prime Minister Junichiro Koizumi described the ultimatum as "a very difficult decision" for Bush and reiterated his government's position that there was no need for a new U.N. resolution backing a military attack. "It was a decision that had to be made," Koizumi said. "We support the U.S. position."

With most of the population opposed to military action against Iraq, Koizumi's remarks could spell trouble for his government though any support wouldn't go beyond providing billions of dollars in post-war reconstruction for Iraq.

While the politicians cautioned on war, investors reacted with relief that the endgame in Iraq may be at hand. Asian markets soared, the dollar jumped versus the yen and crude prices fell Tuesday as the region's investors joined in the huge rally on Wall Street on Monday. See Asia Markets.

French bourse falls

But in Europe, markets were mixed in the early going as debate raged over whether Britain would send in troops amid widespread public opposition and the resignation of key cabinet members.

Robin Cook, a cabinet member who resigned on Monday to protest U.K. support for the U.S. without a second resolution, said he would vote against the war. A debate on Iraq and a vote are expected in parliament later on Tuesday.

London's FTSE was slightly higher, while France's bourse was the biggest loser among the regional exchanges. Read Europe markets.

France has been the most strident opponent of U.S. military action against Iraq among United Nations Security Council members, with a threat to veto a second U.S. resolution forcing Washington to abort a vote calling on Iraq to disarm or face military action.

The strongest U.S. support came from Australia, where prime minister John Howard defied massive opposition with his pledge to send 2,000 troops already on standby in the Middle East.

In South Korea, which is already facing a double whammy from a nuclear confrontation with the communist North, the government warned that already high tensions over Pyongyang's nuclear programs could rise further with an outbreak of war in Iraq.

In mostly Muslim Indonesia, the government called the ultimatum regrettable.

In Turkey, leaders said they were ready to press ahead with a measure to allow the U.S. military to use the country as a staging area for a war against Iraq. The U.S. has threatened to withhold billions of aid to Turkey unless it allows troops to base there in preparation for a northern invasion.

Talk of war couldn't even escape the president of Botswana, Festus Mogae, who was in Tokyo Tuesday as part of efforts to drum up in investment in that diamond-rich African country.

"We are very apprehensive," he told CBS.MarketWatch.com in an interview. "We fear war will have an adverse impact on the economies of the world, especially developing nations."

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